A strong, broad-based rally is underway with the S&P/TSX composite index continuing to charge higher.
Month-to-date, the TSX Index has rallied over 2 per cent. If the TSX can hold onto this gain over the eight trading sessions remaining in the month, it would mark the fifth consecutive month of gains for the index.
Since the beginning of November, the S&P/TSX Composite Index has climbed 15.7 per cent with 10 of the 11 sectors posting gainsof which six have realized double-digit price returns. In fact, if it wasn’t for BCE Inc. (BCE-T), which has declined 10 per cent since the beginning of November, all 11 sectors would be in the green. Looking at individual stocks in the TSX Index, over 80 per cent have realized positive price returns since the start of November.
To see what the Street’s expectations are for all 224 stocks in the TSX Index, this report includes a link to a list of analysts’ target prices, recommendations, forecast returns and yields for securities in the S&P/TSX Composite Index grouped by sector and ranked according to their expected price returns (excluding dividend and distribution income).
The posted target price for each security is an average of all available target prices from analysts. A target price typically reflects an expected share or unit price 12 months from now based on an analyst’s financial modelling, such as a discounted cash flow or sum-of-the-parts model.
For the yield provided, Bloomberg calculates this figure by annualizing the most recent announced dividend or distribution value.
It’s important to note that high target prices, which imply stellar returns that seem unbelievable may be just that - unrealistic. At times, when a stock price falls analysts may maintain their bullish expectations, inflating the forecast return. In addition, an outlier (extreme target price) can skew the average target price, to the upside or downside, particularly when the number of analysts covering a stock is low.
Don’t let a huge projected gain lure you into a position – it is critical to look at the company and industry fundamentals.
Jennifer Dowty